he The impact of JIT system on manufacturing industry By ..
JIT is the technique of supplying ..
Cat dealers around the world create a significant competitive edge for us – and we view each other as partners. We expect them to provide superior sales and after-sales services. They expect us to provide them with consistently high-quality, state-of-the-art products. To make sure we can hold up our end of this bargain, we’ve invested billions to bring our factory systems and processes into the realm of high technology and, in doing so, changed the focus of our manufacturing operations from push to pull – from building inventories that customers might order to building products that customers have ordered. We streamlined material flow, pulling through in-process material. Huge high-rise storage facilities – which were thought to be vital to operations – became obsolete. Logistical control of in-process material became the heartbeat of our operations.
(JIT) is the best manufacturing technique.
But in today’s world – and certainly in the world of the 21st century – hard assets can be copied, and indeed often are, in shorter and shorter periods of time. Manufacturing and technical expertise can be studied – and duplicated. For that reason, we believe the real key to Caterpillar’s future success lies in distribution. For many industries, I would strongly suggest that in an increasingly global economy, it is distribution that will separate the winners from the losers. Let me elaborate. Caterpillar’s distribution system, which is a well-established worldwide network of independently owned dealers, is usually cited as our most distinctive competitive advantage. Why? Because each one of our dealers – almost 200 of them – provides real value to our customers.